The Indian rupee fell by 24 paise to a fresh 32-month low of Rs. 50.91 against the US dollar on 16 November amid depreciation of the euro due to the deepening European debt crisis. Persistent dollar demand from banks and importers and a weak opening in the equity market put temendous pressure on the Indian rupee.
The rupee is currently the worst-performing Asian currency, weakening by more than 13% from its strongest point in late July 2011. Trade deficit and fiscal issues are the other factors that have impacted rupee depreciation.
The Indian rupee breached the Rs 51 per US dollar-level after a 32-month gap on good dollar demand from banks and importers in view of the strong dollar overseas.
The rupee resumed lower at Rs 50.90/91 per dollar on the Interbank Foreign Exchange, as against 15 November’s close of Rs 50.67/68 per dollar, and dropped further to a 32-month low of 51.01 per dollar before quoting at Rs 50.88/90 per dollar.
The rupee had last touched Rs 51.20 per dollar on 31 March 2009.
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